Anything leading you to going through bankruptcy is not a happy tale, but the life you live after might be. With a clean slate, it is possible to start over both financially and personally. Don’t look at it as the end of the world; read this article to help you determine how your life will be enhanced by bankruptcy.

Many people find that they must file for bankruptcy protection because they have more debt than they can afford to repay. If this is your case, you should do some research about bankruptcy laws in your state. The laws governing bankruptcy vary from state to state. For example, the personal home is exempt from being touched in some states, but not in others. Be sure to have some familiarity with the law in your jurisdiction.

When it gets time to think about bankruptcy, avoid using your retirement or savings to pay off the creditors or even make attempts to settle the debt. You should always keep money saved for worse times. Dipping into savings may need to happen, just don’t totally wipe it out, or you might not have much financial security later.

Before making the decision to file for bankruptcy, be sure to do some research and learn all you can about the subject. There are many websites available that offer this information. The United States Check out the Bankruptcy Institute site and do some research about consumer’s rights. You need to spend some time gathering valuable information so you can file your bankruptcy with confidence.

Instead of relying on random selections from the phone book or Internet, ask around and get personal recommendations. You want your bankruptcy to go smoothly, and the Internet is rife with fly-by-night companies whose only goal is to prey upon the financially desperate.

Do not abandon hope. If you file for bankruptcy, you might be able to reclaim certain property that has been repossessed, such as your car, electronics or jewelry. You may be able to recover repossessed property if the repossession occurred fewer than 90 days ago. Get help from your lawyer to file a petition so you can get your items back.

Chapter 13 Bankruptcy

It can be difficult to obtain unsecured credit once you have filed for bankruptcy. If you find yourself in this situation, you may want to think about getting a secured card or two. If you pay what you owe back promptly at all times, you can show that you are taking steps to be responsible about your payments and credit rating. In time, you might be granted unsecured credit again.

Consider if Chapter 13 bankruptcy is an option. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. By filing this way, you can hold onto your home and property, while repaying debts through debt consolidation. Such plans generally take between 3 and 5 years to complete, at which point. a discharge will be granted. Bear in mind that if you miss a single payment that is due under your plan, the entire case will be dismissed by the Court.

The events that lead someone to declare bankruptcy can cause great emotional distress. Afterward, however, you can have an easier time. If you put the ideas you learned in this article into practice, you can write a whole new financial story and live happily ever after.